RI proposes gas cartel

Indonesia has started a campaign for gas producing countries to set up a cartel to avoid fierce competition from one another, according to Minister of Energy and Mineral Resources Purnomo Yusgiantoro.

Purnomo was quoted by the Bisnis Indonesia daily as saying Thursday that the gas cartel would be similar to OPEC oil cartel.

He said that during the past couple of years, gas producing countries like Qatar, Iran, Malaysia, Egypt and Indonesia have been exchanging views about the world gas market and the possibility of setting up the cartel.

Purnomo, however, added that gas producing countries had to study the proposal carefully because the world gas market is currently dominated by buyers.

"It's a good idea, but we must be extra careful because it's a buyers market," he said.(*)